SSP Group Shares Downgraded by UBS On Slowing Airline Capacity Growth

SSP Group (LON: SSPG) shares have been under pressure over the last couple of sessions after UBS downgraded the stock from Neutral to Sell. 

In a note to clients last week, the bank highlighted weaker growth prospects. The investment bank raised its price target for the stock to 170p, up from 165p, but warned of downside risks to consensus expectations.

SSP shares fell almost 8% on Friday, while the stock has fallen a further 1.4% so far on Monday.

UBS analysts noted that the stock has climbed about 12% since SSP's first-half results in May, helped in part by optimism surrounding the company's Indian IPO. However, UBS cautioned that this rally may not be sustainable.

“UBS Evidence Lab data indicates a step down in airline capacity growth in 3Q, with industry data indicating a further significant reduction in capacity growth in 4Q,” the analysts wrote. 

This slower growth outlook, combined with a stronger British pound, is expected to weigh on SSP’s performance in the coming quarters.

UBS now sees its fiscal year 2026 EBIT and EPS forecasts 7% and 10% below consensus, respectively. “As we now see consensus estimates as unlikely to be achieved, we downgrade our rating to Sell,” the bank added.

SSP’s third-quarter revenue update is scheduled for release on July 29.